Tuesday, 28 May 2024

Nikkei index ends higher as banking crisis fears receded


The Japanese Nikkei index closed higher today, Friday, led by banking and electronics stocks, as sentiment was boosted by the easing of concerns about the crisis of the US Silicon Valley Bank and the Swiss Credit Suisse Group.

According to “Reuters”, the Nikkei closed up 1.2 percent at 27,333.79 points, and the broader Topix index closed, up 1.15 percent, at 1959.42 points.

Despite this, the Nikkei index ended the week lower in light of a raging banking crisis that led to a decline in bond yields, while market participants limited much of their expectations of raising interest rates in the future in Western economies.

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The strong closing follows rising risks in Asian markets in general and on Wall Street overnight, which is expected to spread to European stocks.

Investors are now awaiting any developments as the tightening policy pursued by central banks may continue. On Thursday, the European Central Bank raised interest rates by half a percentage point

Electronics giant Sony Group and Mizuho Financial Group rose 3.52 percent and 1.96 percent, respectively, and were among the biggest gainers on the Nikkei index.

Taisei Construction Company declined 8.13 percent, followed by Nippon Sheet Glass, which fell 2.41 percent.

Sanrio Entertainment Co. Ltd. and Business Breakthrough Education Co. were the biggest percentage gainers on Topix, rising 16.73 percent and 19.46 percent, respectively.

Social shopping company Enigmo and bar operator Hub Ltd. were the biggest losers, down 12.58 percent and 9.39 percent, respectively.